Twitter’s (TWTR) stock got hammered today along with a raft of other leading technology stocks. The blue bird’s in need some of some serious momentum, and I have a feeling Twitter’s CEO feels the same way. The usual pattern for a tech IPO goes like this:
1) Raise tons of cash.
2) Go on an acquisition spree.
3) Sell bonds or more stock to raise even more cash.
4) Buy more companies.
Facebook (FB) is in phase 2. The company’s rumored to be buying a drone company to spread internet access in Africa. They’re also buying virtual reality headset-maker Oculus Rift.
I have no doubt that Twitter’s going to follow suit. They need rapidly-growing revenue to keep stockholders happy, and acquisitions are a great way to do that. The company’s also just yanked it’s music app from iTunes. The speculation is they’ll bundle music streaming services in with their core app. I doubt that’ll bring in much revenue since they’re going up against titans like Pandora, Spotify and iTunes itself. My advice? Buy Spotify!